How O2's £2.50 Mobile Increase and EDF's New Energy Tariffs Affect Your Monthly Bills

Understanding Recent Provider Price Changes

When your mobile or energy provider announces price changes, the headline figures don't always tell the full story of how your monthly budget will be affected. Recent announcements from O2, EDF, and Scottish Power highlight the importance of calculating the real-world impact on your household expenses.

This guide breaks down exactly how to work out what these changes mean for your bills, using concrete examples from major UK providers to help you make informed decisions about whether to stick with your current deals or explore alternatives.

O2's Mid-Contract Mobile Price Increases: What You'll Pay

From April 2026, O2 has implemented a £2.50 monthly increase for all pay-monthly voice plans, with data-only and smartwatch plans seeing a smaller £0.75 rise^[1]. This applies to both new and existing customers, including those currently mid-contract.

Here's how the increases translate to real monthly costs:

• A £30 voice plan will increase to £32.50 per month
• A £9 data-only plan will rise to £9.75 per month
• Over a full year, this represents an additional £30 for voice plans or £9 for data-only plans

Unlike previous years where increases were tied to inflation rates, this is a flat fee increase that affects all customers regardless of their current plan cost. Mobile phone direct reviews have highlighted customer concerns about this approach, particularly as it represents a more significant percentage increase for customers on lower-cost plans^[2].

Energy Tariff Changes: EDF and Scottish Power Updates

EDF's New Fixed Tariff Options

EDF has introduced the Simply Fixed 2Yr Mar28v3 tariff, which initially matches the current price cap at £1,772 but will drop to £1,641 from 1 April 2026^[3]. This two-year fixed deal provides price certainty while benefiting from the expected reduction in policy costs.

For customers currently on variable tariffs, this represents potential annual savings of around £117 compared to staying on the standard variable rate.

Scottish Power's Economy 7 and Standard Tariffs

Scottish Power follows the Ofgem price cap, which increased by just 0.2% to £1,758 for the January to March 2026 period^[4]. This modest rise of approximately £3 per year reflects relatively stable energy market conditions.

The Scottish Power Economy 7 tariff continues to offer lower overnight rates for customers who can shift their energy usage to off-peak hours, typically between 12:30am and 7:30am.

Comparing 2026 Energy Tariffs Across Major Suppliers

To help you understand how different suppliers compare, here are the current unit rates and standing charges from major UK energy providers:

These figures show that while unit rates vary between suppliers, the differences in total annual costs are relatively small, making other factors like customer service and contract terms increasingly important^[5][6].

Calculating the Impact on Your Monthly Budget

Step 1: Review Your Current Costs

Start by gathering your most recent bills to understand your current monthly outgoings. For mobile plans, note your monthly cost and data allowance. For energy, look at both your unit rates and standing charges, as these can vary significantly between suppliers.

Step 2: Apply the New Rates

For mobile customers, simply add the applicable increase to your current monthly cost. Energy calculations are more complex as they depend on your actual usage patterns. Use your annual kWh consumption from previous bills to calculate costs under different tariff structures.

Step 3: Consider Your Usage Patterns

Your individual circumstances significantly affect whether these changes represent good or poor value. Heavy mobile data users might find better value by switching to unlimited plans from other providers, while energy customers with high overnight usage could benefit from Economy 7 tariffs.

Gas vs Electric: Understanding Your Options

When considering energy costs, many households wonder whether gas or electric heating offers better value. Generally, gas remains cheaper than electricity for heating, with gas unit rates typically 3-4 times lower than electricity rates. However, the efficiency of your heating system and your home's insulation also play crucial roles in determining overall costs.

For different types of broadband and energy combinations, consider how your household uses technology and energy together. Smart home systems can help optimise energy usage, while unlimited broadband plans might reduce mobile data needs.

When to Consider Switching Providers

Price increases often present a good opportunity to review your contracts and explore alternatives. For mobile contracts, you may have the right to exit penalty-free if increases exceed certain thresholds. Energy customers can typically switch at any time, though exit fees may apply to some fixed tariffs.

Key factors to consider include:

• Total cost over your typical contract length
• Network coverage quality (for mobile)
• Customer service ratings
• Additional perks or services included

When comparing providers like E.ON versus British Gas, or evaluating EDF's standard tariff charges against competitors, services like Join Lodo can simplify the comparison process by handling the research and switching paperwork for you.